Why traditional insurance is no longer sufficient for the 21st century……

Traditional insurance policies were not developed to handle the threats now facing us in the 21st century. They were designed to deal with threats to physical assets such as buildings, machinery and office equipment.

Most businesses now have a huge reliance on digital assets making the need for a new kind of policy necessary – this is why cyber insurance is a necessity.

Over 95% of cyber claims are for first party losses only such as:-

Theft of Funds – this relates to straight forward theft of money from a bank account. Criminals now target online accounts as opposed to physical banks. Should a business have somehow been negligent in allowing this to happen, their bank will more than likely not reimburse them. Please note that not all cyber policies include theft of funds.

Theft of Data – Identity theft is reaching record numbers meaning that criminals taking part in this crime need more and more data. Information such as names and addresses that are stored on a computer network may be worth more than you imagine.

Damage to Digital Assets – By either threatening to damage or actually damaging digital assets, digital attackers know that they can extort money from a company by them paying a ransom, rather than seeing their business grind to a halt.

For each of these types of claim, there is a direct financial loss to the victim which can be insured with a cyber insurance policy.